A partnership is an association of at least three persons who co-own a business for profit. True or False

1. Each partner is individually liable for the debts of a partnership. True or False
2. A partner’s liability is limited to his or her investment in the firm. True or False
3. In a partnership, each partner has his or her separate capital account. True or False
4. If Sam Jones invests $2,000 cash and merchandise inventory valued at $5,000 in a partnership, his capital account will have an opening balance of $5,000. True or False

Answer following:

6. Which of the following is not an advantage of a partnership?

1. Combined experience and talent

2. Unlimited life

3. Combined resources

4. Ease of formation